How The Democrats Lost Small Business Support

What I think the Democrats missed was when you look at job creation in America, 62% are created by businesses—small businesses, 5 to 500 employees. These are first and second generation family businesses. They are the backbone of the American economy. They are not stupid; they understand the difference between 21 and 28% corporate tax rate because they pay that.

They also understand the difference—and this is very important—of un-taxing unrealized capital gains. That I can assure you was a lightning bolt through that constituency. Every small investor in these people, this is what I do: I'm an advocate for small business in America. That freaked them out.

They thought that was un-American. They thought that wasn't really the American dream—to have the government take money from you before you've realized anything. It was a real shocker. You may remember, including she put proxies out there and advocates to try and pull that back in, you know, saying, "Look, I'll never do that. Congress will never pass that."

But that really affected the psyche of the American small business family, and it cost her a lot.